Cheniere Energy affiliate adds two more LNG tankers for 2007 deliveries

Allen Baker

An affiliate of Cheniere Energy Inc. has chartered two new LNG carriers, both for delivery in late 2007, when the company expects to be taking deliveries at its planned LNG terminal in Sabine Pass, La.

The affiliate chartering the vessels is J&S Cheniere S.A., which is a partnership of Cheniere and J&S Services and Investment, a private commodity trader. It already had one LNG vessel in service, the Tenaga Empat.

One of the new ships, with a capacity of 145,000 cubic meters or 38 million gallons, is being built by Kawasaki Shipbuilding Corp. Cheniere, based in Houston, announced that deal Aug. 26. J&S signed the time charter for up to 10 years with Kawasaki Kisen Kaisha, Ltd. The second tanker will hold a bit more, 154,500 cubic meters, and it will be built by Imabari Shipbuilding Co. Ltd. The time charter agreement, again 10 years, is with a joint venture company established by Kawasaki Kisen Kaisha, Shoei Kisen Kaisha Ltd., and others. That deal was announced Sept. 1.

Cheniere’s chairman and CEO, Charif Souki, said the two deals came just three weeks after the environmental impact statement was completed for the company’s Sabine Pass LNG terminal, indicating no significant impediments to getting permits for the facility.

“We believe we are on track to break ground in the first quarter of 2005 and be in service in late 2007 or early 2008,” Souki said.

In addition to the Sabine Pass facility in Louisiana, Cheniere is planning an LNG receiving terminal near Corpus Christi, Texas, and is a partner in another proposed LNG port venture with ConocoPhillips in Freeport, Texas.